ACTIVITY BASED COSTING Definition

Bookmark and Share

ACTIVITY BASED COSTING (ABC) is a costing system that identifies the various activities performed in a firm and uses multiple cost drivers (non-volume as well as the volume based cost drivers) to assign overhead costs (or indirect costs) to products. ABC recognizes the causal relationship of cost drivers with activities.

Learn new Accounting Terms

FRINGE BENEFIT an incidental benefit awarded for certain types of employment (especially if it is regarded as a right) (Example: employer supplied health insurance or two weeks paid vacation per year).

MATCHING PRINCIPLE see MATCHING CONCEPT.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.